Belturbet's location is at one of the best places for crossing the River Erne. When the Anglo-Normans tried to conquer Cavan in the early 13th century, Walter de Lacy built a motte-and-bailey on Turbet Island. The fort was probably made of wood and it hasn't survived, though the steep mound of earth where it was built is still to be seen. In the late 16th century the local O'Reilly chieftains built a castle opposite Turbot Island. This has not survived either.

As part of the Plantation of Ulster in the early 17th century the lands around Belturbet were granted to the English "undertaker" Stephen Butler. He soon established a thriving urban centre, whose prosperity relied heavily on its position on the River Erne. In October 1641 the town was seized by the Irish as part of the Irish Rebellion of 1641. Belturbet was the site of one of the massacres of planters, in which over two dozen were thrown from the town's bridge and drowned. In March 1653 Belturbet, under Viscount Magennis of Iveagh, was the last town in Ireland to fall to Cromwell; the final Irish stronghold at nearby Cloughoughter held out a further month.[7]

Belturbet also acquired an English garrison in the late 17th century. Many of the original fortifications are in good repair. The town retains much of its original lay-out. The main street leads to the square or 'diamond' where all of the town's important buildings are situated. The parish church dominates the sky-line; some of it dates from the early 17th century, and it was one of the first Anglican churches built in Ireland, reputedly using materials from Drumlane Abbey. In the 1650s the proto-Quaker leader, William Edmundson was detained at Belturbet and put in the stocks.[8] The parish church was damaged by lightning in the 1720s.

Andrew Grene (1965–2010), a civil affairs officer with the United Nations, grew up largely on a small farm outside of Belturbet. After initially working as a speechwriter for Boutros Boutros Ghali, he transitioned to international policy at UN Headquarters in New York, and then became a political affairs officer in the field. He worked in the Central African Republic, Eritrea and Ethiopia, and assisted in the peaceful devolution of power from Indonesia to an independent East Timor (Timor Leste). His last posting was in Haiti, where he worked for three years as a senior member of staff; he was SASRSG to Hedi Annabi at the time of the earthquake of January 12, 2010, in which he and many of the UN mission lost their lives. He was laid to rest in Belturbet churchyard, in a funeral attended by delegates from the President of Ireland, the Chief of Staff and the Foreign Minister; the Department of Foreign Affairs dedicated the annual Andrew Grene Conflict Resolution Scholarship in his honor. The Andrew Grene Foundation, a charity dedicated to assisting Haiti through education and microfinance, was also founded in his memory.

Two young people, Geraldine O'Reilly, Staghall, Belturbet and Patrick Stanley, from Clara, Co. Offaly, were killed by a Loyalist car bomb in Belturbet on 28 December 1972.[10]

An award winning documentary on the atrocity, 'The Forgotten bomb' was made by Fran McNulty, it featured interviews with the families and locals who remembered the bombing. The programme was broadcast on Shannonside Northern Sound Radio. The journalist won the best regional journalist award in the ESB media awards in 2004 for the programme. Both parents of Patrick Stanley featured in the documentary. The brother of Geraldine O'Reilly, Anthony, who was serious injured in the attack also featured. A specially sculptured monument was erected in early 2007 on the site of the bomb, dedicated to these two victims.

Cavan County Council have erected a monument to commemorate their deaths at the site of the bombing. Several memorial services have been held at the monument. The 30th anniversary of the tragedy heard the father of Patrick Stanley, Joe, make a heart touching speech at the site. It came just weeks after the death of Patrick's mother.

Bus Éireann Expressway Route 309, jointly operated with McGeehan Coaches, provides a frequent service to/from the town many times daily and Ulsterbus Route 5810 from Enniskillen has its terminus in the town. The bus stop is located outside the former post office on the Diamond (for Cavan/Dublin-bound services it is on the opposite side of the road). Leydons Coaches operate route 930 linking the town to Cavan, Ballyconnell, Bawnboy, Swanlinbar and Enniskillen.[13]

The town's main source of revenue is tourism, which includes fishing, boat cruising, the local railway station and country walks. The town has its own festival, Belturbet Festival Of The Erne which also includes the Lady Of the Erne competition. The festival attracts large crowds for the last week in July and boasts one of the largest fancy dress parties in Ireland. Employment for most of the locals is in Cavan Town, Ballyconnell or other nearby areas. There are few sources of employment in the town itself, aside from tourism related jobs. The town has a Farmers Mart every Friday afternoon, where local and fresh produce is sold, and specialities include Cheese, Fish, Breads, Vegetables, etc. There is a Car Boot Sale at the Railway Station on the last Sunday of every month, commencing around 10.30a.m.

A Play entitled "The Tangler in Court" written by local Playwright Brendan McCann, and produced by Belturbet Dramatic Society is presented at Belturbet Festival of The Erne during the period July 26 - August 3, 2009.

From 1893 to 1931, Shan Fadh Bullock wrote 14 novels set in the Cavan-Fermanagh borderland, renaming Belturbet "Bunn" for his books.[18] Belturbet is mentioned in James Joyce's 1922 novel Ulysses, in the fifteenth episode, Circe. The reference comes from Cissy Caffrey, who says: 'More luck to me. Cavan, Cootehill and Belturbet'.